HD 2753 
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1920 





































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New York State ^ 

Franchise Tax on 
Business 
Corporations 

(Corporation Income Tax) 


Amendments of 1920 


Guaranty Trust Company 
of New York 



i 


New York State Franchise Tax 


on 

Business Corporations 


Chapter 726 
Laws of New York 1917 
Approved June 4, 1917 

As Amended By 
Chapter 271, Laws 1918 
Chapter 276, Laws 1918 
Chapter 292, Laws 1918 
Chapter 417, Laws 1918 
Chapter 138, Laws 1919 
Chapter 628, Laws 1919 
Chapter 113, Laws 1920 

Chapter 640, Laws 1920 

> «< 

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Guaranty Trust Company of New York % 

140 Broadway 

FIFTH AVENUE OFFICE MADISON AVENUE OFFICE 

Fifth Avenue and 44th Street Madison Avenue and 60th Street 

GRAND STREET OFFICE 
268 Grand Street 

LONDON LIVERPOOL PARIS HAVRE 

BRUSSELS CONSTANTINOPLE 

Capital and Surplus.$50,000,000 

Resources more than.$800,000,000 


Copy Z 


HU 2753 

U7H055 
1 1 z<J 
c 


COPYRIGHT, 1920 

BY GUARANTY TRUST COMPANY OF NEW YORK 


'Gift from 
Charts H. Butler 
Mar. 28 , 1932 

* 

« « * 






Foreword 


T he corporation franchise tax is imposed upon 
every business corporation organized or doing 
business in the State of New York. The rate of 
tax is per centum on the corporation’s entire 
net income, such entire net income being presum¬ 
ably the same as that shown in the Federal 
income tax return. 

A minimum tax is placed on the amount which 
every corporation shall pay of not less than ten 
dollars and not less than one mill upon each dollar 
of its issued capital stock. 

The return for tax must be filed with the State 
Tax Commission for each corporation subject to 
the tax on or before the first day of July of each 
year, or thirty days after filing its Federal income 
tax return, for the taxable year beginning Novem¬ 
ber first following. Payment of the tax is required 
to be made on or before January first following, 
or within thirty days after the receipt of notice. 

This booklet contains a synopsis of the principal 
provisions of the law and a reprint of the full text 
as amended by Chapters 113 and 640, Laws 1020. 

Guaranty Trust Company 
of New York 


Synopsis of Law 

Imposing a 

Franchise Tax on Business 
Corporations 


Imposition of Tax 

For each year beginning November first, 
every corporation organized or doing busi¬ 
ness in the State of New York is required to 
pay annually, in advance, a tax of four and 
one-half per centum upon its entire net income. 
The Tax Commission will compute the tax 
upon the basis of the entire net income for the 
calendar or fiscal year of the corporation, next 
preceding, presumably the same as that 
shown by the return of the corporation filed 
with the United States Government under 
the Federal Income Tax Law,* or as other¬ 
wise provided under Section 214 of the law. 
In the case of a corporation organized without 
the United States the tax will be computed 

* Federal Income Tax, Form 1120. 

[ 5 ] 



upon the basis of the entire net income in 
fact rather than the amount earned in the 
United States or the amount reported in the 
Federal return. 

A minimum tax is imposed upon every 
corporation, subject to tax, of not less than 
ten dollars and not less than one mill upon 
each dollar of its issued capital stock. (See 
“Minimum Tax,” p. 17.) 


Corporations Subject to Tax 

All corporations doing business in the State 
of New York, are subject to the franchise 
tax except (1) steam surface railroad, canal, 
steamboat and other transportation cor¬ 
porations, which are subject to tax, under 
Section 184, of Chapter 62 , Laws 1909; 
{ 2 ) corporations owning or operating elevated 
railroads or surface railroads, which are not 
operated by steam, waterworks companies, 
gas companies, and electric or steam heating, 
lighting and power companies, which are sub¬ 
ject to tax, under Sections 185 and 186; 
(3) insurance companies, which are subject to 
[ 6 ] 


tax, under Section 187; (4) trust companies, 
subject to tax, under Section 188; (5) invest¬ 
ment companies, subject to tax, under Section 
188-A; (6) savings banks, subject to tax, under 
Section 189, including banks, savings banks, 
institutions of savings, title guaranty, insur¬ 
ance or surety corporations; (7) corporations 
wholly engaged in the purchase and sale of, 
and holding title to, real estate for them¬ 
selves, and (8) corporations whose sole busi¬ 
ness consists of holding the stocks of other 
corporations for the purpose of controlling 
their management and affairs, except such 
corporations as are required to make a con¬ 
solidated report under Section 211. 

Exemptions From Certain 
Other Taxation 

Corporations subject to tax under the law as 
amended, shall not be assessed on any per¬ 
sonal property or on capital stock, after 
June 4, 1917. 

Corporation Report 
On or before July 1, of each year, or thirty days 
after filing its report of entire net income to the 
[7] 


United States Treasury Department, every 
corporation subject to tax is required to file 
with the Tax Commission of the State of New 
York, a report of its entire net income, under 
oath of the president, vice-president, secretary, 
or treasurer of the corporation, in form pre¬ 
scribed by the Tax Commission. The report of 
its entire net income shall be on the basis of the 
net income of the corporation for the calendar 
year preceding July 1, or, if the Federal in¬ 
come tax return is based on the fiscal year of 
the corporation, the report of net income for 
the purpose of assessment of the franchise tax 
shall likewise be based on the fiscal year pre¬ 
ceding July 1. 

The Tax Commission has authority, upon 
good cause being shown, to extend the time 
for filing report. 

Blanks for making reports will be furnished 
by the Tax Commission but failure to secure 
a blank will not relieve a corporation from 
the obligation of filing a report. 

Contents of Report 

The report to the Tax Commission shall in¬ 
clude the following: 


[ 8 ] 


1. The name and location of the principal 
place of business of the corporation; the State 
under the laws of which it is organized; the 
date of organization; the amount of its issued 
capital stock; the kind of business transacted. 
Any corporation not organized under the laws 
of any State within the United States shall 
state the facts in relation to its entire net in¬ 
come wherever earned and as though organ¬ 
ized under the laws of New York State, in¬ 
stead of stating its income as returned to the 
United States Treasury Department. 

2 . The amount of its entire net income for 
the preceding calendar or the preceding fiscal 
year as shown in the last return of annual net 
income made by the corporation to the United 
States Treasury Department (except as pro¬ 
vided in paragraph 1 above), or the amount 
claimed by it to be the net income. Any de¬ 
duction allowed for losses sustained by the 
corporation in prior years shall be specified. 

3. The average monthly value for the year 
of its real property and tangible personal 
property in each city, village, or portion of a 
town outside of a village within the State, 

[9] 


and the average value of all its real property 
and the tangible personal property wherever 
located. 

4. The average monthly value of bills and 
accounts receivable* for the year, arising from 
(a) personal property sold by the corporation 
manufactured by it within the State, (b) per¬ 
sonal property owned by the corporation and 
not manufactured by it within the State, but 
sold by it or its agents and located within the 
State when order was received, (c) the pur¬ 
chase or sale of, or trading in, goods, wares or 
merchandise not located at any place at which 
the corporation conducted a permanent or 
continuous business without the State, and 
where bills and accounts receivable arose from 
orders received or accepted by an officer or 
agent, or at any place of business, in the State, 
and (d) services performed by any officer, 
agent or representative of the corporation 
connected with, sent from, or reporting, 
either directly or indirectly, to any officer, or 
office, located in the State. 

*Limited to bills and accounts receivable for personal 
property and cannot include loans, advances, etc. 

[ 10 ] 



The average total monthly value of bills 
and accounts receivable for the year arising 
from the manufacture by it of personal prop¬ 
erty, or the purchase or sale of, or trading in, 
personal property, or from services performed 
by the corporation, its officers or agents, 
excluding those arising from advances or 
loans. 

5. The average total value for the fiscal or 
calendar year of the stock of other corpora¬ 
tions owned by the corporation, and the pro¬ 
portion of average value of the stock of such 
other corporations within the State of New 
York as allocated pursuant to the provisions 
of the law. 

6. If the corporation has no real or tangible 
personal property within the State, the city 
or town within the State in which is located 
the office in which its principal financial con¬ 
cerns within the State are transacted. 

7. Such other facts as the Tax Commission 
may require for the purpose of computing the 
tax, or for comparison with former reports. 

8. Any corporation taxable under the law 
upon its entire net income may omit from its 

[ 11 ] 


report the statements required by paragraphs 
4 and 5 above, by incorporating in its report 
a consent to be taxed upon its entire net in¬ 
come. Corporations having no net income 
shall, however, complete the segregation of 
assets in every case. 

Any corporation which owns or controls, 
directly or indirectly, substantially all of the 
capital stock of another corporation or corpo¬ 
rations, liable to report under the law T , may 
be required to make a consolidated report 
showing the combined entire net income, such 
assets of the corporations as are required for 
the purposes of the law, and all other neces¬ 
sary information, except intercorporate stock¬ 
holdings and accounts. 

A combined report may be permitted where 
substantially all the capital stock of two or 
more corporations liable to taxation under the 
law is owned by the same interests, and the 
Tax Commission may impose the tax as 
though the combined entire net income and 
segregated assets were those of one corpora¬ 
tion, or may otherwise equitably adjust 
the tax. 


[121 


Where any corporation liable to the tax 
conducts its business in such manner as 
directly or indirectly to benefit any of its 
members or stockholders or any interested 
person or persons, by selling its products or 
the goods or commodities in which it deals at 
less than a fair price which might be obtained 
therefor, or where such a corporation, a sub¬ 
stantial portion of whose capital stock is 
owned either directly or indirectly by another 
corporation, acquires and disposes of the 
products of the parent corporation in such a 
manner as to create a loss or improper net in¬ 
come, the Tax Commission may determine 
the amount which shall be deemed to be the 
entire net income of such corporation, having 
regard to the fair profits which might have 
been otherwise obtained. 

Supplemental Report 

In addition to the above report, the Tax Com¬ 
mission may require a supplemental report 
containing such information and data as may 
be deemed necessary for the computation of 
the tax. 


[131 


Taxation of Corporations Acquiring 
Assets or Franchises of Other 
Corporations 

Any corporation which acquires either direct¬ 
ly or indirectly or by merger or consolidation, 
the major portion of the assets or franchise of 
another corporation or any corporation exer¬ 
cising any franchise or franchises or doing any 
business in the State shall include in its next 
annual return so much of the entire net income 
of such corporation not used or included in 
measuring a franchise tax to the State and 
shall pay tax upon such combined entire 
net incomes for the ensuing year, and as here¬ 
inbefore provided. The provisions for a min¬ 
imum tax shall be applied only when under 
such provisions a tax will result in excess of 
the amount which would be produced by a tax 
on entire net income as hereinbefore provided 
and then in lieu thereof. 

Computation of Tax 
Based on the report filed by the corporation, 
the tax shall be computed as follows: 

A. If the entire business of the corpora¬ 
tion is transacted within the State, the tax 
[14] 


imposed, if imposed upon the entire net in- 
come, shall be based upon the entire net 
income of the corporation, as defined ill 
Section 208, for the preceding taxable year, 
subject to any corrections made by the 
Tax Commission because of fraud, error, or 
evasion. 

B. If the entire business of the corporation 
is not transacted within the State, the tax 
imposed shall be based upon that proportion 
of the entire net income of such corporation, 
which the aggregate of 

1. The average monthly value of the real 
property and tangible personal property 
within the State; 

2. The average monthly value of bills and 
accounts receivable arising from (a) personal 
property sold by the corporation, from mer¬ 
chandise manufactured by it within the State, 

(b) personal property owned by the corpora¬ 
tion and not manufactured by it within the 
State but sold by it or its agents and located 
within the State, when order was received, 

(c) the purchase or sale of, or trading in, 
goods, wares or merchandise not located at 

IVI 


any place at which the corporation conducted 
a permanent or continuous business without 
the State, and where such bills and accounts 
receivable arose from orders received or ac¬ 
cepted by any officer or agent, or at any place 
of business, in the State; and (d) services per¬ 
formed by any officer, agent, or representative 
of the corporation connected with, sent from, 
or reporting, either directly or indirectly, to 
any officer, or office, located in the State. 

3. The proportion of the average value of 
the stocks of other corporations owned by the 
corporation allocated to the State, but not 
exceeding ten per centum of the real and 
tangible personal property, segregated to 
the State (See “Stock owned by Corpora¬ 
tions,” p. 19.) 

bears to the aggregate of 

1. The average monthly value of all the 
real property and tangible personal property 
of the corporation wherever located; 

2. The average total monthly value for the 
year of bills and accounts receivable arising 
from (a) personal property sold by the corpo¬ 
ration from merchandise manufactured by it, 

[ 16 ] 


within and without the State, and (b) the 
purchase, sale of, or trading in, personal prop¬ 
erty, or from services performed by the cor¬ 
poration, its officers or agents, excluding those 
arising from advances or loans. 

3. The average total value of the stocks of 
other corporations owned by the corporation 
but not exceeding ten per centum of the 
aggregate real and tangible personal property 
set up in the report. 

Minimum Tax 

A minimum tax will be imposed upon every 
corporation subject to tax of not less than 
ten dollars and not less than one mill upon 
each dollar of such a part of its issued capital 
stock at its face value, as the amount of its 
gross assets employed in the State bears to its 
gross assets wherever employed. 

The tax on stock without par value shall 
be based on such portion of its issued capital 
stock as its gross assets employed in the State 
bear to the entire gross assets wherever em¬ 
ployed. For purposes of this assessment 
shares without par value shall be deemed to 
[17] 


have; a face value of one hundred dollars 
each. 

If a corporation subject to tax at the rate 
of one mill maintains only a statutory office 
without the State, it shall be taxed upon its 
entire issued capital stock. 

Tangible Property 

The words “tangible personal property” 
mean corporeal personal property, such as 
machinery, tools, implements, goods, wares 
and merchandise, and do not include money, 
deposits in banks, shares of stock, bonds, 
notes, credits, or evidences of an interest in 
property and evidences of debt. Real prop¬ 
erty and tangible personal property shall be 
taken at its value where located. 

Entire Net Income Defined 

The term “entire net income” means the 
total net income before any deductions have 
been made for taxes paid or to be paid to the 
Government of the United States on either 
profits or net income or for any losses sus¬ 
tained by the corporation in other fiscal or 
[IB] 


calendar years whether deducted by the 
Government of the United States or not. 

Personal Property Defined 

The term “personal property,” for the pur¬ 
poses of the exemption from taxation, shall 
include any movable machinery and equip¬ 
ment used for trade or manufacture and not 
essential for the support of the building, struc¬ 
ture or superstructure, and removable without 
material injury thereto, and shall not include 
boilers, ventilating apparatus, elevators, 
plumbing, heating, lighting and power gen¬ 
erating apparatus, shafting other than coun¬ 
ter-shafting, equipment for the distribution 
of heat, light, power, gases, and liquids, nor 
any equipment consisting of structures or 
erections to the operation of which machinery 
is not essential. The owner of a building, as 
regards personal property, is entitled to the 
same exemption as a lessee. 

Stock Owned by Corporations 

The value of share stock of another corpora¬ 
tion owned by a corporation subject to tax 
shall, for the purpose of allocation of assets, 
[191 


be apportioned in and out of the State, in 
accordance with the value of the physical 
property within and without the State rep¬ 
resenting such share stock. 

Audit and Statement of Tax 
On or before the first day of December of 
each year, the Tax Commission will audit 
and state the account of each corporation, 
compute the tax thereon, and notify the State 
Comptroller for the purpose of collection. 

The notice to the Comptroller will indicate 
the distribution of the tax collected to the 
several counties and subdivisions thereof as 
determined by the Tax Commission. 

Notice of Tax 

Notice of assessment of the tax will be sent 
to each corporation by mail, to the post-office 
address given in the report, and the record of 
the mailing of such notice, kept by the Tax 
Commission, will be presumptive evidence of 
the giving of the notice. 

Payment 

Taxes must be paid to the State Comptroller 
on or before the first day of January of each 
[ 20 ] 


year, or within thirty days after the receipt 
of notice, if given subsequent to December 
first of the taxable year. If taxes are not 
paid when due, a penalty of ten per centum 
additional, with interest at the rate of one per 
centum per month, will be assessed and col¬ 
lected. The State Comptroller, upon sub¬ 
mission of satisfactory proof that failure to 
pay such taxes within the prescribed time 
was not wilful or evasive, may modify the 
exaction to not less than one per centum per 
month. Unpaid taxes are a lien upon the 
personal and real property of the corporation 
from the time they are due until paid in full. 

Corrections and Changes in Federal 
Income Tax Return 
If the return of net income of a corporation 
to the United States Treasury Department 
upon which the Federal Income Tax is based, 
is changed or corrected by the United States 
Commissioner of Internal Revenue, the cor¬ 
poration is required to file with the State Tax 
Commission, within ten days after notice of 
the correction, a report of net income as cor¬ 
rected or changed and concede the correctness. 

[n] 


thereof or state wherein erroneous. The Tax 
Commission shall ascertain the amount of 
the entire net income, but its determination 
shall be subject to review and revision. 

If it is found that taxes in excess of the 
amount due by the corporation have been 
paid, such excess will be credited to the corpo¬ 
ration or to any assignee of the corporation 
from which taxes are due under this law. 
If the corrected report shows additional taxes 
to be due, the corporation is required to pay 
the amount assessed within thirty days after 
notice of assessment from the Tax Com¬ 
mission. 

Revision and Readjustment 

An application for revision may be filed by a 
corporation any time within one year from the 
time an account is audited and stated by the 
State Tax Commission; and if, upon hearing, 
it appears that the account includes taxes 
illegally exacted, the Tax Commission will 
restate and adjust the account accordingly 
and may, in its discretion, modify the penalty 
imposed for failure to report. The determina- 
[ 22 ] 


tion of the Tax Commission, consequent upon 
an application for revision, is subject to re¬ 
view on certiorari by the Supreme Court and, 
upon appeal from the decision of the Supreme 
Court, by the Court of Appeals. 

Penalty for Failure to Report or 
for False Return 

Any corporation failing to file a report as re¬ 
quired under the Law is liable to a fine not 
exceeding $5,000. Any officer of a corpora¬ 
tion who makes a fraudulent return or state¬ 
ment with intent to defeat or evade the pay¬ 
ment of the tax is liable to a fine not exceed¬ 
ing $1,000. 

Estimate of Net Income by 
Tax Commission 

If a corporation fails to file a report of net 
income as required under the law, the Tax 
Commission is authorized to estimate the net 
income and the amount of tax due, from such 
information as it may have in its possession, 
and state an account of the amount of tax. 
due, with penalty and interest. 

[23] 


Warrant for Collection of Taxes 

If the tax is not paid within thirty days after 
it is due, and no appeal or other proceeding 
has been taken to review the assessment, the 
Comptroller may issue a warrant to the 
sheriff of the county in which the property of 
the delinquent corporation is located, com¬ 
manding the sheriff to levy upon and sell 
such property for the payment of the taxes, 
penalty and interest due. The warrant will 
be returned and the money collected there¬ 
under will be paid to the Comptroller at the 
time specified in the warrant, which time 
shall not be less than sixty days from the date 
of the issue of the warrant. The warrant 
will be a lien upon the real and personal 
property of the corporation from the time an 
actual levy has been made. 

Suit for Recovery of Taxes and 
Forfeiture of Charter 

Action in the name of the State may be 
brought at any time by the Attorney General, 
at the instance of the Comptroller, to recover 
taxes due and unpaid. 

[24] 


If taxes remain unpaid for a period of one 
year and the Comptroller is satisfied that the 
failure to pay is intentional, action will be 
brought by the Attorney General for the 
forfeiture of the charter or franchise of the 
corporation. If the failure to pay is found 
by the court to have been intentional, judg¬ 
ment will be rendered for the forfeiture of the 
charter, and for the dissolution of the cor¬ 
poration, if it is a domestic corporation; or 
for the annulment of the franchise to do 
business in the State, if it is a foreign cor¬ 
poration. 

Deposit of Revenues 

The Comptroller is required to deposit to his 
credit all moneys collected under this law in 
such responsible banks or trust companies in 
the State as pay the highest rate of interest. 
Any bank or trust company receiving such 
deposit is required to execute an undertaking, 
with sureties approved by the Comptroller, 
for the safe keeping and prompt payment on 
demand of all funds held on deposit. A 
monthly statement of all money received 
from franchise taxes under the law is made 
[25] 


by the Comptroller to the State Treasurer 
on the first day of each month. 

On or before the twenty-fifth day of each 
month, all interest and penalties and two- 
thirds of all taxes collected during the preced¬ 
ing calendar month must be paid into the 
general fund of the State treasury. The bal¬ 
ance shall be distributed and paid to the 
treasurers of the several counties of the State, 
as provided under the law. 

Secrecy of Reports 

The disclosure of any report of income or of 
the contents thereof by any official or em¬ 
ployee, except under judicial order, is pro¬ 
hibited. Any violation of this provision 
will subject the offender to a fine not exceed¬ 
ing one thousand dollars, or imprisonment 
not exceeding one year, or both; and if the 
offender is an employee of the State he will 
be subject to dismissal and will be incapaci¬ 
tated from holding public office for a period 
of five years. 

This provision of the law does not prohibit 
the publication of statistics so classified as to 
[ 26 ] 


prevent the identification of particular re¬ 
ports nor does it prohibit the publication of 
lists of delinquent taxpayers. The inspection 
of returns for the purpose of bringing or de¬ 
fending suit is permitted to the Attorney 
General or other legal representatives of the 
State. Reports shall be retained for at 
least three years. 

Limitation of Time 

Limitations of time of enforcing a civil 
remedy, provided by the code of civil proce¬ 
dure, do not apply to any proceedings taken 
to levy, appraise, assess, determine, or enforce 
the collection of any tax or penalty imposed 
by this law. 


[ 27 ] 







* 










































. 

























. 



















































































Law Imposing Franchise Tax 


on 

Business Corporations 


Chapter 726, Laws of New York, 1917, as 
amended, Constituting Article 9A of Chapter 
62, Laws of New York, 1909 
(New Matter in Italics) 


208. Definitions. 

209. Franchise tax on corporations based on net 

income. 

210. Corporations exempted from article. 

211. Reports of corporations to tax commission. 

212. Reports by corporation on basis of fiscal year. 

213. Reports to be sworn to; forms. 

214. Computation of tax. 

214-a. Taxation of corporations acquiring assets or fran¬ 
chises of other corporations. 

215. Rate of tax. 

216. Penalty for failure to report. 

217. Powers of tax commission. 

218. Revision and readjustment of accounts by tax 

commission. 

219. Review of determination of tax commission by 

certiorari and regulations as to writ. 

219-a. Audit and statement of tax. 

219-b. Notice of tax. 

219-c. When tax payable. 

219-d. Corrections and changes. 

219-e. Warrant for the collection of taxes. 

219-f. Action for recovery of taxes; forfeiture of charter 
by delinquent corporations. 

219-g. Deposit of revenues collected. 

219-h. Disposition of revenues collected. 

219-i. Secrecy required of officials: penalty for violation. 
219-j. Exemption from certain otner taxation. 

219-k. Limitation of time. 

219-1. Personal property defined. 



§ 208. Definitions. As used in this article: 

1. The term “corporation” includes a joint-stock com¬ 
pany or association; 

2. The words “tangible personal property” shall be 
taken to mean corporeal personal property, such as ma¬ 
chinery, tools, implements, goods, wares and merchandise, 
and shall not be taken to mean money, deposits in bank, 
shares of stock, bonds, notes, credits or evidences of an 
interest in property and evidences of debt; 

3. The term “entire net income” means the total net in¬ 
come before any deductions have been made for taxes paid 
or to be paid to the Government of the United States on 
either profits or net income or for any losses sustained by 
the corporation in other fiscal or calendar years whether 
deducted by the Government of the United States or not. 

§ 209. *Franchise tax on corporations based on net in¬ 
come. For the privilege of exercising its franchise in this 
state in a corporate or organized capacity every domestic 
corporation, and for the privilege of doing business in this 
state, every foreign corporation, except corporations speci¬ 
fied in the next section, shall annually pay in advance for 
the year beginning November first next succeeding the 
first day of July in each and every year an annual franchise 
tax, to be computed by the tax commission upon the basis 
of its entire net income for its fiscal or the calendar year 
next preceding, as hereinafter provided, which entire net 
income is presumably the same as the entire net income 
upon which such corporation is required to pay a tax to the 
United States, or as otherwise provided by section two hun¬ 
dred and fourteen of the tax law, except that the entire net 
income of a corporation not organized under the laws of any 
state within the United States which shall be taken as the basis 
of computation by the tax commission shall be the entire net 
income in fact rather than the amount earned in the United 
States or the amount returned to the United States treasury 
department. 

§ 210. *Corporations exempted from article. Corpora¬ 
tions wholly engaged in the purchase and sale of , and hold¬ 
ing title to, real estate for themselves, corporations whose 
sole business consists of holding the stocks of other corpora¬ 
tions for the purpose of controlling the management and af- 


* Amended by Chapter 640, Laws 1920, effective May 10, 1920. 

[30] 



fairs of such other corporations, except such as are specifically 
subject .to report under the provisions of subdivision nine of 
section two hundred and eleven of the tax law, and corpora¬ 
tions liable to tax under sections one hundred and eighty- 
four to one hundred and eighty-nine inclusive of this chap¬ 
ter, banks, savings banks, institutions for savings, title 
guaranty, insurance or surety corporations shall be exempt 
from the payment of the taxes prescribed by this article. 

§ 211. *Reports of corporations to tax commission. 
Every corporation taxable under this article as well as 
foreign corporations having officers, agents or representa¬ 
tives within the state shall annually on or before July first, 
or within thirty days after the making of its report of entire 
net income to the United States treasury department for 
any fiscal or calendar year, preceding said first day of July, 
transmit to the tax commission a report in the form pre¬ 
scribed by the tax commission specifying: 1. The name 
and location of the principal place of business of such cor¬ 
poration, the state under the laws of which organized, and 
the date thereof; the amount of its issued capital stock and 
the kind of business transacted. Any corporation not or¬ 
ganized under the laws of any state within the United 
States shall state the facts in relation to its entire net in¬ 
come wherever earned and as though organized under the 
laws of this state, and instead of stating its income as re¬ 
turned to the United Stales treasury department. 

2. The amount of its entire net income for its preceding 
fiscal or the preceding calendar year as shown in the last re¬ 
turn of annual net income made by it to the United States 
treasury department, except as provided in subdivision one of 
this section. If the corporation shall claim that the return 
made to the United States treasury department was inac¬ 
curate, the amount claimed by it to be the net income for 
such period shall be specified. If any deduction has been 
allowed for losses sustained by the corporation in prior 
years the amount so allowed and deducted shall be spe¬ 
cified. 

3. The average monthly value for the fiscal or calendar 
year of its real property and tangible personal property 
in each city, village or portion of a town outside of a village 
within the state, and the average monthly value of all its 
real property and tangible personal property wherever 
located. 


♦Amended by Chapter 640, Laws 1920, effective May 10, 1920. 



4. The average monthly value for the fiscal or calendar 
year of bills and accounts receivable arising from (a) 
personal property sold by the corporation from merchan¬ 
dise manufactured by it within this state; (b) personal 
property owned by the corporation and not manufactured by it 
within this state but sold by it or its agents and located within 
the state at the time of the receipt of the order; (c) the pur¬ 
chase or sale of, or trading in, goods, wares or merchandise not 
located at any place at which the corporation conducted a per¬ 
manent or continuous business without the state, and where the 
bills and accounts receivable arose from orders received or ac¬ 
cepted by any officer or agent, or at any place of business, in 
this state; and ( d ) services performed by any officer, agent or 
representative of the corporation connected with, sent from, or 
reporting, either directly or indirectly, to any officer located in 
this state or at any office located, owned, rented or occupied in 
this state. Also the average total monthly value for the 
fiscal or calendar year of bills and accounts receivable 
arising from the manufacture by it of personal property or the 
purchase or sale of, or trading in, personal property, or from 
services performed by the corporation, its officers or agents, 
excluding those arising in any way from advances or loans. 

5. The average total value for the fiscal or calendar year 
of the stock of other corporations owned by the corpora¬ 
tion, and the proportion of the average value of the stock of 
such other corporations within the state of New York, as 
allocated pursuant to section two hundred and fourteen of 
this chapter. 

6. If the corporation has no real or tangible personal 
property within the state, the city, village or portion of a 
town outside of a village in the state in which is located 
the office in which its principal financial concerns within 
the state are transacted. 

7. Such other facts as the tax commission may require 
for the purpose of making any computation required by this 
article, or for the purpose of comparison with former reports 
to determine whether or not such reports were erroneous or 
fraudulent. 

8. Any corporation taxable hereunder upon its entire net 
income may omit from its report the statements required by 
subdivisions four and five by incorporating in its report 
a consent to be taxed upon its entire net income. Corpo- 


[ 32 ] 


rations having no net income shall, however, complete the 
segregation of assets in every case. 

9. Any corporation owning or controlling, either directly 
or indirectly, substantially all of the capital stock of another 
corporation, or of other corporations, liable to report under 
this article, may be required to make a consolidated report 
showing the combined entire net income, such assets of the 
corporations as are required for the purposes of this article, and 
such other information as the tax commission may require, but 
excluding intercorporate stockholdings and intercorporate 
accounts. 

The tax commission may permit the filing of a combined 
report where substantially all the capital stock of two or more 
corporations liable to taxation under this article is owned by 
the same interests. The tax commission may impose the tax 
provided by this article as though the combined entire net in¬ 
come and segregated assets were those of one corporation, or 
may , m such other manner as it shall determine, equitably 
ddjust the tax. 

Where any corporation liable to taxation under this article 
conducts the business whether under agreement or otherwise in 
such manner as either directly or indirectly to benefit the mem¬ 
bers or stockholders of the corporation, or any of them, or any 
person or persons, directly or indirectly interested in such 
business by selling its products or the goods or commodities in 
which it deals at less than a fair price which might be obtained 
therefor, or where such a corporation, a substantial portion of 
whose capital stock is owned either directly or indirectly by an¬ 
other corporation, acquires and disposes of the products of the 
corporation so owning the substantial portion of its capital stock 
in such a manner as to create a loss or improper net income, the 
tax commission may require such facts as it deems necessary 
for the proper computation provided by this article, and may 
for the purpose of the act determine the amount which shall be 
deemed to be the entire net income of the business of such cor¬ 
poration for the calendar or fiscal year, and in determining 
such entire net income the tax commission shall have regard to 
the fair profits which, but for any agreement, arrangement or 
understanding, might be or could have been obtained from 
dealing in such products, goods or commodities. 

§ 212. Reports by corporation on basis of fiscal year. 

A corporation which reports to the United States treasury 
department on the basis of its fiscal year, may report to 

[33] 


the tax commission upon the same basis, except as provided 
in section two hundred and fourteen-a of this chapter. 

§ 213. Reports to be sworn to; forms. Every report 
required by this article shall have annexed thereto the 
affidavit of the president, vice-president, secretary or treas¬ 
urer of the corporation to the effect that the statements 
contained therein are true. Blank forms of the report 
shall be furnished by the tax commission, on application, 
but failure to secure such a blank shall not release any 
corporation from the obligation of making a report herein 
required. The commission may require a further or supple¬ 
mental report under this article to contain further informa¬ 
tion and data necessary for the computation of the tax 
herein provided. 

§ 214. ^Computation of tax. If the entire business of 
the corporation be transacted within the state, the tax 
imposed by this article, if imposed upon the entire net income , 
shall be based upon the entire net income of such corpora¬ 
tion for such fiscal or calendar year as defined in section tw6 
hundred and eight of this chapter subject, however, to any 
correction thereof for fraud, evasion or error, as ascertained 
by the state tax commission. 

If the entire business of such corporation be not trans¬ 
acted within the state, the tax imposed by this article shall 
be based upon a proportion of such entire net income, to be 
determined in accordance with the following rules: 

The proportion of the entire net income of the corpora¬ 
tion upon which the tax under this article shall be based, 
shall be such portion of the entire net income as the ag¬ 
gregate of 

1. The average monthly value of the real property and 
tangible personal property within the state. 

2. The average monthly value of bills and accounts 
receivable arising from (a) personal property sold by the. 
corporation from merchandise manufactured by it with¬ 
in this state; (b) personal property owned by the corporation 
and not manufactured by it within this state but sold by 
it or its agents and located within the state at the time of 
the receipt of the order; (c) the purchase or sale of, or trading 
in, goods, wares or merchandise not located at any place at 
which the corporation conducted a permanent or continuous 


♦Amended by Chapter 640, Laws 1920, effective May 10, 1920. 



business without the state, and where the bills and accounts 
receivable arose from orders received or accepted by any officer 
or agent, or at any place of business, in this state ; and (d) 
services performed by any officer, agent or representative of the 
corporation connected with, sent from, or reporting, either 
directly or indirectly, to any officer located in this state or at 
any office located, owned, rented or occupied in this state. 

3. The proportion of the average value of the stocks of 
other corporations owned by the corporation, allocated 
to the state as provided bv this section, but not exceeding 
ten per centum of the real and tangible personal property 
segregated to this state under this article bears to the ag¬ 
gregate of 

4. The average monthly value of all the real property 
and tangible personal property of the corporation, wherever 
located. 

5. The average total monthly value for the fiscal or calen¬ 
dar year of bills and accounts receivable arising from 
(a) personal property sold by the corporation from mer¬ 
chandise manufactured by it within and without' this 
state; and (b) the purchase, or sale of, or trading in, per¬ 
sonal property, or from services performed by the corporation, 
its officers or agents, excluding those arising in any way from 
advances or loans. 

6. The average total value of stocks of other corporations 
owned by the corporation, but not exceeding ten per centum 
of the aggregate real and tangible personal property set up 
in this report. 

7. In case any report is made as provided by subdivision 
nine of section two hundred and eleven of the tax law, the tax 
commission may assess the tax against either of the corpora¬ 
tions whose assets or net income are involved in the report and 
upon the basis of the combined entire net income and the com¬ 
bined segregated assets of the corporation and upon such other 
information as it may possess, or may adjust the tax in such 
other manner as it shall determine to be equitable. 

Real property and tangible personal property shall be 
taken at its actual value where located. The value of 
share stock of another corporation owned by a corpora¬ 
tion liable hereunder shall for purposes of allocation of 
assets be apportioned in and out of tne state in accordance 
with the value of the physical property in and out of the 
state representing such share stock. 


It is further provided that every domestic corporation 
exercising its franchise in this state and every foreign cor¬ 
poration doing business in this state, other than those ex¬ 
empted by section two hundred and ten of this chapter, 
shall be subject to a minimum tax of not less than ten 
dollars and not less than one mill upon each dollar of such 
a part of its issued capital stock, at its face value, as the 
amount of its gross assets employed by it in its business in this 
state bears to its gross assets wherever employed by it in its 
business. If such a corporation has stock without par value, 
then the base of the tax shall be such a portion of its 
issued capital stock as its gross assets employed in its business 
in this state bear to the entire gross assets employed in its 
business, and its shares without par value shall be deemed 
to have a face value of one hundred dollars each for the 
purposes of this assessment. 

If such a corporation is subject to a tax at the rate of one mill, 
and it maintains no regular place of business outside this state, 
except a statutory office, it shall be taxed upon its entire issued 
capital stock as herein provided. 

214-a. Taxation of corporations acquiring assets or 
franchises of other corporations. If any corporation taxable 
under this article shall acquire either directly, indirectly or 
by merger or consolidation the major portion of the assets 
or the franchise of another corporation or of corporations 
exercising any franchise or franchises or doing any business 
in this state during any year, it shall include in its own next 
annual return, in addition to its own entire net income, so 
much of the entire net income of the corporation or corpora¬ 
tions whose assets or franchises it acquired as shall not have 
been used or included in measuring a franchise tax to this 
state, and shall be taxed upon such combined entire net 
incomes for the year to ensue and as hereinbefore provided. 
The provisions for a minimum tax shall be applied only 
when under such provisions a tax will result in excess of the 
amount which would be produced by a tax on entire net 
income as hereinbefore provided and then in lieu thereof. 

This section shall be construed as having been in effect 
as of the date of the original enactment of article nine-a of 
the tax law, as added by chapter seven hundred and twenty- 
six of the laws of nineteen hundred and seventeen. 

§ 215 *Rate of tax. The tax imposed by this article 
shall be at the rate of four and one-half per centum of the 

♦Amended by Chapter 640, Laws 1920, effective May 10, 1920. 

[36] 



entire net income of the corporation or portion thereof tax¬ 
able within the state, determined as provided by this arti¬ 
cle, unless taxable upon its capital stock at the rate of one 
mill or subject to the minimum tax of ten dollars, as provided 
in section two hundred and fourteen of the tax law. 

§ 216. Penalty for failure to report. Any corporation 
which fails to make any report required by this article 
shall be liable to a penalty of not more than five thousand 
dollars to be paid to the state, to be collected in a civil 
action, at the instance of the tax commission; and any 
officer of any such corporation who makes a fraudulent 
return or statement with intent to defeat or evade the pay¬ 
ment of the taxes prescribed by this article shall be liable 
to a penalty of not more than one thousand dollars, to be 
collected in like manner. All moneys recovered as penal¬ 
ties, for a failure to report or for making fraudulent reports 
shall be paid to the state comptroller. 

§ 217. *Power8 of tax commission. The tax comihission 
may for good cause shown extend the time within which 
any corporation is required to report by this article. If 
any report required by this article be not made as herein 
required, the tax commission is authorized to make an 
estimate of the net income of such corporation and of 
the amount of tax due under this article, from any informa¬ 
tion in its possession, and to order and state an account 
according to such estimate for the taxes, penalties and 
interest due the state from such corporation. All the 
authority and powers conferred on the tax commission by 
the provisions of section one hundred and ninety-five of the 
tax law shall have full force and effect in respect of cor¬ 
porations which may be liable hereunder. 

§ 218. *Revision and readjustment of accounts by 
tax commission. If an application for revision be filed 
with the commission by a corporation against which an 
account is audited and stated within one year from the 
time any such account shall have been audited and stated, 
the commission shall grant a hearing thereon and if it shall 
be made to appear upon any such hearing by evidence 
submitted to it or otherwise, that any such account in¬ 
cluded taxes or other charges which could not have been 
lawfully demanded, or that payment has been illegally 
made or exacted of any such account, the commission shall 
resettle the same according to law and the facts, and adjust 

♦Amended by Chapter 640, Laws 1920, effective May 10, 1920, 

[37] 



the accounts for taxes accordingly, and may , in its discretion , 
modify the penalty imposed for failure to report as provided 
in this article , and shall send notice of its determination 
thereon to the corporation and state comptroller forthwith. 

§ 219. Review of determination of tax commission by 
certiorari and regulations as to writ. The determination 
of the commission upon any application made to it by any 
corporation for revision and resettlement of any account, 
as prescribed by this article, may be reviewed in the man¬ 
ner prescribed by and subject to the provisions of section 
one hundred and ninety-nine of this chapter. 

No certiorari to review any audit and statement of an 
account or any determination by the commission under this 
article shall be granted unless notice of application therefor 
is made within thirty days after the service of the notice of 
such determination. Eight days’ notice shall be given to 
the commission of the application for such writ. The full 
amount of the taxes, percentage, interest and other charges 
audited and stated in such account must be deposited with 
the state comptroller before making the application and an 
undertaking filed with the commission, in such amount and 
with such sureties as a justice of the supreme court shall 
approve, to the effect that if such writ is dismissed or the 
determination of the commission affirmed, the applicant 
for the writ will pay all costs and charges which may accrue 
against it in the prosecution of the writ, including costs of 
all appeals. 

§ 219-a. Audit and statement of tax. On or before 
the first day of December in each year the tax commission 
shall audit and state the account of each corporation 
known to be liable to a tax under this article, for its pre¬ 
ceding fiscal or the preceding calendar year, and shall 
compute the tax thereon and forthwith notice the same to 
the state comptroller for collection. The tax commission 
shall determine the portion of such tax to be distributed 
to the several counties and the amounts to be credited to 
the several cities or towns thereof, when the same is col¬ 
lected, and shall indicate such determination in noticing 
such tax to the state comptroller. If the corporation has 
real property or tangible personal property located in a 
village, or if it has no real or tangible personal property in 
the state but the office in which its principal financial 
concerns within the state are transacted is located in a 


village, the tax commission shall indicate such facts to the 
state comptroller, with the name of the village in which 
such office or property is located. 

§ 219-b. Notice of tax. Every report required by sec¬ 
tion two hundred and eleven of this chapter shall contain 
the post-office address of the corporation and lines or spaces 
upon which the corporation shall enter its entire net income. 
Notice of tax assessment shall be sent by mail to the post- 
office address given in the report, and the record that such 
notice has been sent shall be presumptive evidence of the 
giving of the notice and such record shall be preserved by 
the tax commission. 

§ 219-c. *When tax payable. The tax hereby imposed 
shall be paid to the state comptroller on or before the first 
day of January of each year, or within thirty days after 
notice of the tax has been given as provided in section two 
hundred and nineteen-b of this chapter if such notice is 
given subsequent to the first day of December of the year 
for which such tax is imposed. If such tax be not so paid, 
or in the case of additional taxes, if not paid within thirty 
days after notice of such additional tax has been given as 
provided in section two hundred and nineteen-d of this 
chapter and such notice of additional tax is given subse¬ 
quent to the first day of December of the year for which 
such additional tax is imposed, the corporation liable to 
such tax shall pay to the state comptroller, in addition to 
the amount of such tax, or additional tax, ten per centum 
of such amount, plus one per centum for each month the 
tax or additional tax remains unpaid, but the state comptroller 
upon submission to kirn of satisfactory proof that the failure 
to pay such taxes, or additional taxes, within the time pre¬ 
scribed in this article, was not willful or evasive, may modify 
the exaction to not less than one per centum for each month fol¬ 
lowing the due date of*the tax. Each such tax or additional 
tax shall be a lien upon and binding upon the real and per¬ 
sonal property of the corporation liable to pay the same 
from the time when it is payable until the same is paid in 
full. 

§ 219-d. Corrections and changes. If the amount of the 
net income for any year of any corporation taxable under 
this article as returned to the United States treasury de- 


♦Aroended by Chapter 640, Laws 1920, effective May 10, 1920. 



partment is changed or corrected by the commissioner of 
internal revenue or other officer of the United States or 
other competent authority, such corporation, within ten 
days after receipt of notice of such change or correction, 
shall make return under oath or affirmation to the tax 
commission of such changed or corrected net income, 
and shall concede the accuracy of such determination or 
state wherein it is erroneous. 

The tax commission shall ascertain, from such return 
and any other information in the possession of the commis¬ 
sion, the entire net income of such corporation for the fiscal 
or calendar year for which such change or correction has 
been made by such commissioner of internal revenue or 
other officer or authority. All the authority conferred on 
the tax commission by the provisions of section one hun¬ 
dred and ninety-five of this chapter is hereby granted to it 
in respect to the ascertainment of such entire net income. 
The tax commission shall thereupon reaudit and restate the 
account of such corporation for taxes based upon the entire 
net income for such fiscal or calendar year, such reaudit to 
be according to the entire net income so ascertained by the 
tax commission. The proceedings and determination of 
the tax commission in the making of such reassessment 
may be revised and readjusted and reviewed in the manner 
provided by sections two hundred and eighteen and two 
hundred and nineteen of this chapter, as in the case of an 
original assessment of the tax. If from such reassessment 
it appears that such corporation shall have paid under this 
article an excess of tax for the year for which such reassess¬ 
ment is made, the tax commission shall return a statement 
of the amount of such excess to the comptroller, who shall 
credit such corporation with such amount. Such credit 
may be assigned by the corporation in whose favor it is 
allowed to a corporation liable to pay taxes under this 
article, and the assignee of the whole or any part of such 
credit on filing with the commission such assignment shall 
thereupon be entitled to credit upon the books of the comp¬ 
troller for the amount thereof on the current account for 
taxes of such assignee in the same way and with the same 
effect as though the credit had originally been allowed in 
favor of such assignee. If from such reassessment it ap¬ 
pears that an additional tax is due from such corporation 
for such year, such corporation shall, within thirty days 
after notice has been given as provided in section two hun- 

[40] 


dred and nineteen-b of this chapter by the tax commission, 
pay such additional tax. 

§ 219-e. Warrant for the collection of taxes. If the 
tax imposed by this article be not paid within thirty days 
after the same becomes due, unless an appeal or other pro¬ 
ceeding shall have been taken to review the same, the 
comptroller may issue a warrant under his hand and official 
seal directed to the sheriff of any county of the state com¬ 
manding him to levy upon and sell the real and personal 
property of the corporation owning the same, found within 
his county, for the payment of the amount thereof, with 
the added penalties, interest and the cost of executing the 
warrant, and to return such warrant to the comptroller 
and pay to him the money collected by virtue thereof by a 
time to be therein specified, not less than sixty days from 
the date of the warrant. Such warrant shall be a lien upon 
and shall bind the real and personal property of the cor¬ 
poration against whom it is issued from the time an actual 
levy shall be made by virtue thereof. The sheriff to whom 
any such warrant shall be directed shall proceed upon the 
same in all respects, with like effect, and in the same man¬ 
ner as prescribed by law in respect to executions issued 
against propertv upon judgments of a court of record, and 
shall be entitled to the same fees for his services in execut¬ 
ing the warrant, to be collected in the same manner. 

§ 219-f. Action for recovery of taxes; forfeiture of char¬ 
ter by delinquent corporations. Action may be brought at 
any time by the attorney-general at the instance of the 
comptroller, in the name of the state, to recover the amount 
of any taxes, penalties and interest due under this article. 
If such taxes be not paid within one year after the same be 
due, and the comptroller is satisfied that the failure to pay 
the same is intentional he shall so report to the attorney- 
general, who shall immediately bring an action in the name 
of the people of the state, for the forfeiture of the charter or 
franchise of any corporation failing to make such payment, 
and if it be found that such failure was intentional, judg¬ 
ment shall be rendered in each action for the forfeiture of 
such charter and for its dissolution if a domestic corpora¬ 
tion and if a foreign corporation for the annulment of its 
franchise to do business in this state. 

§ 219-g. Deposit of revenues collected. The state 
comptroller shall deposit all taxes, interest and penalties 

[41] 


collected under this article in responsible banks, banking 
houses or trust companies in the state which shall pay 
the highest rate of interest to the state for such deposit, 
to the credit of the state comptroller on account of the 
franchise tax. And every such bank, banking house 
or trust company shall execute and file in his office an 
undertaking to the state, in the sum, and with such 
sureties, as are required and approved by the comptroller, 
for the safe keeping and prompt payment on legal de¬ 
mand therefor of all such moneys held by or on de¬ 
posit in such bank, banking house or trust company, 
with interest thereon on daily balances at such rate 
as the comptroller may fix. Every such undertaking shall 
have indorsed thereon, or annexed thereto, the approval 
of the attorney-general as to its form. The state comp¬ 
troller shall on the first day of each month make a verified 
return to the state treasurer of all revenues received by him 
under this article during the preceding month, stating by 
whom and when paid, and shall credit himself with all pay¬ 
ments made to county treasurers since his last previous 
return pursuant to section two hundred and nineteen-h 
of this chapter. 

§ 219-h. Disposition of revenues collected. The state 
comptroller shall on or before the twenty-fifth day of each 
month pay into the state treasury to the credit of the gen¬ 
eral fund all interest and penalties and two-thirds of all 
taxes received by him under this article during the pre¬ 
ceding calendar month, as appears from the return made 
by him to the state treasurer. The balance of all taxes 
collected and received by him under this article from any 
corporation, as appears from the return made by him to 
the state treasurer, shall, on or before the twenty-fifth day 
of April, July, October and January, for the quarter ending 
with the last day of the preceding month, be distributed 
and paid by him to the treasurers of the several counties 
of the state and disposed of by such treasurers, in accord¬ 
ance with the following rules: 

1. If the corporation has no tangible personal property 
within ^he state, such payment shall be made to the county 
treasurer of the county in which is located the office at 
which its principal financial concerns within the state are 
transacted; 

2. If the corporation has tangible personal property, 
as shown by its report pursuant to section two hundred 

[42] 


and eleven, in but one city or town of the state, such 
payment shall be made to the county treasurer of the 
county in which such city or town is located; 

3. If the corporation has tangible personal property in 
more than one city or town of the state, as shown by its re¬ 
port pursuant to section two hundred and eleven, such pay¬ 
ments shall be made to the county treasurers of the coun¬ 
ties in which such cities or towns are located in the propor¬ 
tion that the average monthly value of the tangible per¬ 
sonal property of such corporation in the cities and towns 
of such county bears to the average monthly value of all 
its tangible personal property within the state; 

4. In making such payment to a county treasurer, the 
state comptroller shall indicate the portion thereof to be 
credited to any city or town within the county on account 
of the location therein of its principal financial office or 
property as determined by the preceding subdivisions, 
and if such principal financial office or property is located 
in a village shall indicate the village in which it is located; 
if such principal financial office or property is located 
in a city or in a town outside of a village, the whole of such 
portion shall be paid to such city or town as hereinafter 
provided; if such principal financial office or property is 
located in a village, there shall be paid to such village as 
hereinafter provided such a part of the entire amount cred¬ 
ited to the town as the entire amount of taxes raised by said 
village, or portion thereof in said town, during the preceding 
calendar year for village and town purposes bears to the 
aggregate amount so raised by the town and village during 
the preceding calendar year for town and village purposes; 

5. As to any county wholly included within a city such 
payment shall be made to the chamberlain or other chief 
fiscal officer of such city and be paid into the general 
fund for city purposes; 

6. As to any county not wholly included within a city, 
the county treasurer shall within ten days after the receipt 
thereof pay to the chief fiscal officer of a city or to the chief 
fiscal officer of a village or to the supervisor of a town the 
portion of money received by him from the state comp¬ 
troller to which such city, village or town is entitled, which 
shall be credited by such officer to general city, village or 
town purposes. 


[ 43 ] 


§ 219-i. Secrecy required of officials; penalty for viola¬ 
tion. 

1. Except in accordance with proper judicial order or as 
otherwise provided by law, it shall be unlawful for any tax 
commissioner, agent, clerk, or other officer or employee to 
divulge or make known in any manner the amount of in¬ 
come or any particulars set forth or disclosed in any report 
under this article. Nothing herein shall be construed to 
prohibit the publication of statistics so classified as to pre¬ 
vent the identification of particular reports and the items 
thereof, or the publication of delinquent lists showing the 
names of taxpayers who have failed to pay their taxes at 
the time and in the manner provided by section two hun¬ 
dred and nineteen-c together with any relevant informa¬ 
tion which in the opinion of the comptroller may assist in 
the collection of such delinquent taxes; or the inspection 
by the attorney-general or other legal representatives of 
the state of the report of any corporation which shall bring 
action to set aside or review the tax based thereon, or 
against whom an action or proceeding has been instituted 
in accordance with the provisions of sections two hundred 
and sixteen or two hundred and nineteen-f of this article. 

Reports shall be preserved for three years, and there¬ 
after until the state tax commission orders them to be 
destroyed; 

2. Any offense against the foregoing provision shall be 
punished by a fine not exceeding one thousand dollars or 
by imprisonment not exceeding one year, or both, at the 
discretion of the court and if the offender be an officer or 
employee of the state he shall be dismissed from office and 
be incapable of holding any public office in this state for 
a period of five years thereafter. 

§ 219-j. *Exemption from certain other taxation. After 
this article takes effect, corporations taxable thereunder 
shall not be assessed on any personal property, or on cap¬ 
ital stock as provided for in section twelve of this chapter. 

§ 219-k. Limitation of time. The provisions of the 
code of civil procedure relative to the limitation of time of 
enforcing a civil remedy shall not apply to any proceeding 
or action taken to levy, appraise, assess, determine or en- 

* Amended by Chapters 113 and 640, Laws 1920, effective March 30, 
1920, and May 10,1920, respectively. 

[ 44 ] 



force the collection of any tax or penalty prescribed by this 
article. 

§219-1. Personal property defined. The term “personal 
property,” for the purpose of the exemption from as¬ 
sessment and taxation thereon locally as granted by section 
two hundred and nineteen-j of this chapter, shall include 
any movable machinery and equipment used for trade or 
manufacture and not essential for the support of the build¬ 
ing, structure or superstructure, and removable without 
material injury thereto. The term “personal property,” 
as used in such section, shall not include boilers, ventilating 
apparatus, elevators, plumbing, heating, lighting and power 
generating apparatus, shafting other than counter-shafting, 
equipment for the distribution of heat, light, power, gases 
and liquids, nor any equipment consisting of structures or 
erections to the operation of which machinery is not 
essential. An owner of a building is entitled to the same 
exemption under this section as a lessee. 


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